Territorial Tax Parity and Clarification Act

Sponsored byDel. Plaskett, Stacey E. [D-VI]VI· Introduced 13 January 2025

Open on Congress.gov

Cosponsors

Actions

Amendments

Committees

—

Since introduced

Introduced

Committee

Passed Chamber

Passed Both

Enacted

Step 1 of 0

Latest action

Referred to the House Committee on Ways and Means.

13 January 2025·1 year ago

Summary

Introduced in House · Updated 8 April 2026

Territorial Tax Parity and Clarification Act

This bill authorizes the Internal Revenue Service (IRS) to limit the income tax payment to the Virgin Islands required to treat income from the sale of certain personal property as foreign-sourced income for federal tax purposes.

As background, income from certain personal property sales from a fixed place of business in a U.S. territory by a U.S. resident may be U.S.-sourced income unless an income tax of at least 10% is paid to the U.S. territory. Under current law, the IRS may limit the 10% tax payment requirement related to income from such personal property sales in Guam, American Samoa, the Northern Mariana Islands, and Puerto Rico.

This bill expands the IRS’s authority to include limiting the tax requirement for personal property sales in the Virgin Islands.

Timeline

3 actions

Referred to the House Committee on Ways and Means.
13 January 2025 · IntroReferral
Introduced in House
13 January 2025 · IntroReferral
Introduced in House
13 January 2025 · IntroReferral

Sponsorship

0 cosponsors

Sponsor

Del. Plaskett, Stacey E. [D-VI]VI

Classification

Policy area

Taxation

Legislative subjects

Caribbean areaEnergy pricesOil and gasSales and excise taxesU.S. territories and protectoratesVirgin Islands

Track Territorial Tax Parity and Clarification Act as it moves through Congress